Minimum Wage

A Staffing Firm Must Pay $9 Million for Misclassifying Its 1,100 Nurses as Independent Contractors

July 31, 2025 | Parks, Chesin & Walbert

One of the more substantial mistakes a business can make is to misclassify employees as independent contractors. An employee whose employer erroneously labels them as an independent contractor may be denied health care insurance coverage, family leave, and unemployment protection. They may also be deprived of the right to receive a minimum wage and overtime compensation. The employer that makes this mistake runs the risk of paying thousands — or millions — in a civil action. In short, both employers and employees have reasons to want to “get it right” when it comes to correct classification, and getting advice from a knowledgeable Atlanta wage and hour lawyer can be crucial to achieving this objective.

A federal case that started in Virginia provides an example of how costly misclassification can be. The employer was a Virginia-based medical staffing company that provided nurses to healthcare facilities in that state and the surrounding areas. The workers were a group of nurses, nurse practitioners, and nursing assistants.

To receive assignments from the company, the entity required candidates to fill out an “application for employment.” That document identified the nurse as an “employee” and the company as the “employer.” If the nurse successfully completed the employment application process, they ultimately signed an “independent contractor agreement,” which included a 12-month non-compete clause.

How a New WHD Policy Impacts Employers’ Exposure to Paying Liquidated Damages in Pre-Litigation Investigations

July 18, 2025 | Parks, Chesin & Walbert

In any legal or administrative dispute, one of the most consequential decisions you must make is whether to settle with the other side or to litigate the dispute all the way to a judgment by a jury or judge. With each option comes particular potential benefits and drawbacks, which is why skilled legal representation matters so much. In your Fair Labor Standards Act case, a knowledgeable Atlanta wage and hour lawyer can be instrumental in identifying all of your possible upsides and risks and make a recommendation about the option that will best meet your needs.

In the context of civil lawsuits, one of the key benefits of settling early is the reduction of overall costs.

These calculations also play a role if your business is facing an investigation by the Labor Department’s Wage and Hour Division. In a new internal guidance bulletin, the division has announced that it will no longer seek liquidated damages in pre-litigation investigations.

What a New Federal Appeals Court Ruling Says About Personal Jurisdiction and FLSA Collective Actions

July 10, 2025 | Parks, Chesin & Walbert

A recent federal appellate ruling is likely a relief for some employers on the West Coast, and perhaps beyond. Although the 9th Circuit Court of Appeals’ opinion is only binding in several western states, it nevertheless represents the latest chapter in a growing trend among federal appellate courts. That trend suggests that, when employees undertake a Fair Labor Standards Act collective action lawsuit, the trial court must determine personal jurisdiction on a claim-by-claim basis, where each opt-in plaintiff must have sufficient ties to the employer’s business in that state. If you have questions about these types of lawsuits, it is advisable to consult with an experienced Atlanta collective action lawyer regarding your specific situation.

The plaintiffs in the 9th Circuit case were a group of current and former tipped employees of the restaurant chain Cracker Barrel, who sued their employer for violating the FLSA. Specifically, the servers alleged that the restaurant’s use of tip credits and its payment practices for tipped workers did not comply with the law’s requirements.

The employees sued in federal court in Arizona. In their court papers, the employees asked the court to certify a collective consisting of “all servers who worked for Cracker Barrel in states where it attempts to take a tip credit… over the last three years.”

How the FLSA’s Statute of Limitations Sunk One Employee’s Minimum Wage Violation Case

June 16, 2025 | Parks, Chesin & Walbert

A minimum wage case that recently came before the 11th Circuit Court of Appeals (whose decisions control federal lawsuits in Georgia, Florida, and Alabama) is an example of how employees with legitimate Fair Labor Standards Act claims can still lose if they proceed without counsel and get tripped up by procedural requirements such as the statute of limitations. The case and its outcome make for a noteworthy cautionary tale about the risks of proceeding without a skilled Atlanta minimum wage lawyer advocating for you and monitoring procedural deadlines like the statute of limitations.

The employee, M.M., worked at a pet store in Florida for approximately three weeks in August 2018.

According to the employee, she worked full-time as a certified veterinary technician at a salary of $35,000 per year. According to the pet store, M.M. was a part-time kennel technician.

What a Brief Dive into Reddit Can Teach About the FLSA and the Requirements Surrounding Employers’ Handling of Pooled Tips

May 16, 2025 | Parks, Chesin & Walbert

The Reddit platform can be a source of amusement and distraction. Occasionally, it can also provide an opportunity for education. Take, for example, a post from earlier this week centering around a pay practices problem and tipped employees. While wholly unverified, the post highlights an example of how employers can violate the law if they are not mindful of the Fair Labor Standards Act’s requirements and why they should consult an experienced Atlanta wage and hour lawyer if they have any questions about handling employees’ tips.

According to the employee, her manager sent a group text message addressed to “all employees.” The manager, “Kelly”, informed her team that the “pooled tips we’ve gotten… won’t be distributed. Janice’s mom just passed away and they could use it more than we do at the moment.”

After reading that, many might wonder, “Can they do that legally?” In short, the answer is “probably not.”

The Rules of Jurisdiction and Deciding Where (and Who) to Sue in Your Georgia FLSA Case

April 9, 2025 | Parks, Chesin & Walbert

Succeeding in a Fair Labor Standards Act lawsuit involves many elements and decisions. For example, the employee who sues must make wise choices regarding who to sue and where to sue. Choosing imperfectly in these regards can leave the employee vulnerable to dismissal (and give employers a crucial tool to avoid litigating a case in a faraway location.) Whether you are an employee who has been denied compensation that complies with the law or you are an employer facing a potential FLSA lawsuit, an experienced Atlanta wage and hour lawyer can answer all your questions about court jurisdiction and FLSA lawsuits.

A recent unpaid overtime and minimum wage case from Athens, Georgia, illustrates how an employee’s flawed choices regarding where to file and whom to sue can lead to dismissal.

The employee was a truck driver for a trucking company based near Nashville, Tennessee. The trucker’s lawsuit alleged that the employer illegally classified him as an independent contractor rather than an employee. As a result, the driver’s compensation violated overtime and minimum wage laws, according to the suit.

Electronic Signatures, Arbitration Agreements, and FLSA Lawsuits in Georgia

March 17, 2025 | Parks, Chesin & Walbert

Modern technology has created many advantages for employers and employees. Today, an employee and an employer can enter into an agreement even with the employee situated hundreds of miles from the employer’s nearest office. Proper electronic security is one thing that employers and employees alike should keep in mind when it comes to e-signatures and online onboarding. If a dispute arises later and the employee seeks to escape parts of her contract — such as an arbitration clause — the employer needs to be equipped with clear evidence showing that the signature occurred at the time of onboarding and could only have been entered by the employee. For questions about arbitration agreements and Fair Labor Standards Act cases, talk to a knowledgeable Atlanta wage and hour lawyer with experience handling this type of dispute.

A recent subminimum wage case involving pizza delivery drivers is a good example of the issues that may be involved in electronic agreement signature matters.

The drivers, O.R. and W.S., signed on to deliver food for a major Pizza Hut franchisee. In October 2023, they filed what they hoped would become a class action lawsuit against their employer, alleging that the franchisee illegally paid them subminimum wages.

Georgia’s Legislature Weighs Ending the Legal Payment of Subminimum Wages to Workers With Disabilities

February 7, 2025 | Parks, Chesin & Walbert

A new bill pending in the Georgia Legislature would end a decades-old practice of employers legally paying some workers a wage well below the federal minimum. The legislation currently pending in the state senate is a reminder that, like all aspects of the law, wage and hour law is constantly evolving. To ensure compliance with the latest changes, you should speak to a knowledgeable Atlanta wage and hour lawyer with a fully up-to-date understanding of the law.

Georgia is one of 23 states that have banned subminimum wages or are considering legislation to end them. The legislation, Senate Bill 55, is called the “Dignity in Pay Act” and is a bipartisan initiative with three Democratic and four Republican sponsors.

The Georgia Council of Developmental Disabilities estimated that roughly 250 Georgians worked at jobs paying a subminimum wage. If the bill becomes law, employers currently paying subminimum wages would have to pay all workers an hourly rate at or above the minimum wage by 2027.

When Employers Can (and Cannot) Deduct Losses or Expenses from a Tipped Worker’s Pay Without Violating the FLSA

September 23, 2024 | Parks, Chesin & Walbert

Business owners face many business risks. One that is regrettably on the rise in the food service industry is the “dine and dash,” where customers consume food or drinks, and then leave without paying. The rise of this practice raises some important questions about who pays for dine-and-dashers’ purchases and when (or if) an employer can deduct the cost of a customer walkout from a tipped worker’s wages. As with any minimum wage or overtime compensation question, obtaining knowledgeable advice to ensure complete legal compliance is crucial. An experienced Atlanta wage and hour lawyer can give you the information you need to understand fully your rights and obligations.

While viral social media content and the FLSA do not regularly overlap, a recent TikTok video provides a real-life example of this issue of customer walkouts and deductions from a tipped worker’s income.

The September 8 video, released by a golf course beverage cart attendant, warned other service industry employees to be cautious when handing a customer a wireless device (such as an iPad or Android tablet) to complete paying for their purchases. Allegedly, a customer used trickery to dodge paying a $76 bill, a deceit the attendant did not discover until after the group was “long gone.”

Collective Actions Under the Fair Labor Standards Act and Federal Court Jurisdiction in Georgia

August 23, 2024 | Parks, Chesin & Walbert

Collective actions (which are highly similar to class actions except they litigate workers’ Fair Labor Standards Act claims against their employers) are occurring more frequently. This reality serves as a reminder of the importance, as an employer, of ensuring complete compliance when it comes to the minimum wage, overtime, classification, and other pay practices covered by the FLSA. If you are a worker who has been denied the pay the FLSA requires – or you are an employer with questions about the FLSA and FLSA collective actions – you should make sure you have reliable answers and information. You can do that by getting your advice from an experienced Atlanta wage and hour lawyer.

Like class actions, collective actions may include both named plaintiffs and additional plaintiffs who subsequently “opt-in.” Some employers, when facing collective actions far from their “home” base of operations, have used the presence of these “opt-in” plaintiffs to fight the collective action on jurisdictional grounds, including one employer that scored a successful outcome recently.

The employer, a Texas-based construction company, employed workers to construct, among other things, buildings that housed livestock. A Wisconsin employee sued the employer in a federal court in that state, alleging that the employer illegally underpaid him by wrongfully classifying him as exempt under the agricultural worker exemption.